Got it. Thanks. It's true that Samsung settled with Microsoft. HTC has gotten into a similar arrangement wtih Microsoft.
Google is still fighting.
But I think it's inaccurate to make a sweeping statement and assumption that "most Android phone manufacturers are actually paying a fee to Microsoft for every phone sold to avoid patent lawsuits."
Legal fights are still ongoing, and it's not like Microsoft sued every Android phone manufacturer.

"Paying a fee to Microsoft for every Android phone sold to avoid patent lawsuits?"
http://www.guardian.co.uk/technology/2011/sep/28/samsung-microsoft-android-licensing-dispute
The Guardian is fairly reliable ;-)

Paying a fee to Microsoft for every Android phone sold to avoid patent lawsuits? I have not heard of that at all. If true, that would be the first...
If you know this for fact, I would like to know. This is unlikely, though, unless MS has some sort of patents that the company asserted, everyone knows about, and everyone needs to pay for.

"wouldn't it perhaps also be that Microsoft windows 8 is not free for OEMs and is not customizable, while Android is? "
Certainly no customizable, but I thought that most Android phone manufacturers are actually paying a fee to Microsoft for every phone sold to avoid patent lawsuits.

Huawei's missing-in-action at Microsoft's event this week may not have much to do with the politics, but rather the company's readiness of the final product.
That said, Jannie Luong, Huawei's spokesperson based in the United States, got back to EE Times and gave us the following official comment -- in regards to comments posted on Weibo by the company's vice president Yu Chengdong:
“Huawei has indeed been unfairly caught up in U.S.-China tensions lately so Mr. Yu’s brief observation is understandable. However, again Huawei Device looks forward to working with Microsoft when it officially launches the Windows Phone. We will provide further information about this shortly.”

Interesting...
wouldn't it perhaps also be that Microsoft windows 8 is not free for OEMs and is not customizable, while Android is? Since Huawei and ZTE seem to like doing their own thing when it comes to Android, perhaps that was a consideration too?
Or maybe they are just being smart and hedging their bets until they see whether Win 8 sinks or swims...